In Portugal, Lula reinforces criticism of the current level of the Selic rate

On a trip to Portugal, President Luiz Inácio Lula da Silva reinforced his criticism of the current level of the basic interest rate, the Selic, set at 13.75% per year by the Monetary Policy Committee (Copom) of the Central Bank (BC).

“We have a problem in Brazil, Prime Minister (António Costa), which I don’t know if Portugal has. It is that our interest rate is very high. In Brazil, the Selic rate, which is the benchmark, is at 13, 75%. Nobody borrows money at 13.75%, nobody. And there is no cheaper money”, he said this Monday (24th), at the Portugal-Brazil Business Forum: Partnerships for Innovation, in Matosinhos, in the European country .

The president added that “a capitalist country needs money and this money has to circulate, not just in the hands of a few”. For him, interest rates need to fall as a measure to stimulate credit and thus generate more growth. “It’s up to us to ensure that the poor can participate. Because when they become a consumer, they will buy. When they buy, the trade will sell. When the trade sells, it will generate jobs, it will buy more product at the factory, there is no need to import from China More jobs will generate more wages, it’s the most normal thing for a ferris wheel of the economy to work and everyone participating,” said Lula.

The base rate is at its highest level since January 2017, when it was also at 13.75% per annum. In March, for the fifth time in a rowthe BC did not change the rate, which has remained at this level since August last year.